BOI-listed firms will be required to offer 10% of shares to public

In a bid to reinvigorate the local stock market and perk up the local capital market, the Board of Investments (BOI) will now strictly implement its requirement for BOI-registered firms to publicly offer at least 10 percent of their shares to the public.

Trade and Industry Secretary and concurrent BOI chairman Cesar V. Purisima said, he has ordered a review of all BOI-registered firms that have availed themselves of incentives for the last 10 years to determine which ones have not yet complied with the 10-percent public offering requirement.

Purisima, who met with Philippine Stock Exchange (PSE) officials recently, said that strictly enforcing the public listing requirement would help perk up the local stock market as well as provide existing firms with fresh capital to reinvest in their endeavor.

The BOI, Purisima said, will impose sanctions or penalties on firms that refuse to comply with the 10-percent public offering requirement.

BOI managing head Elmer Hernandez said there are over 5,000 BOI-registered firms.

Some of them have already complied with the 10-percent public offering requirement through an alternative option of selling or giving some of their shares to their employees.

Hernandez said there is a need for some changes in the PSE listing requirements specifically for BOI-registered firms. For instance, he said, the PSE requires an executive board membership of 11 to 15.

Most BOI-registered firms have only about five board members as most are small or medium firms or are family-owned, he added.